Jobcentre Plus (JCP) advisers have been told not to direct 18 and 19-year-olds to the government’s flagship traineeship scheme because it would put their benefits at risk, FE Week has learned.

Documents seen by FE Week show staff in a number of JCPs are being instructed to ignore the work experience and employability programme — even though the rule affecting benefits is due to be by-passed.

In the Autumn Statement, Chancellor George Osborne promised trainees would be exempt from the Department for Work and Pensions’ (DWP) rule preventing anyone working or training for more than 16 hours a-week claiming Job Seekers Allowance (JSA).

However, there has been no further announcement, although FE Week understands the exemption could be in place within a month.
In the meantime, an email sent to advisers and managers in one JCP from regional managers said: “Following conversations this week with the DWP, they have said they are currently not promoting traineeships to 18 and 19-year-old JCP customers who are in receipt of JSA. This is because… this group of people would lose their entitlement to benefits.”

Kevin Ayton, managing director of provider KSA Training and Development Ltd, told FE Week that traineeship referrals from JCPs had “dried up by 100 per cent”. He said: “We’re struggling at the moment because the JCPs are bulging at the seams with people who would be ideal for a traineeship but aren’t being offered them.” He added that it didn’t seem to be limited to 18 and 19-year-olds.

“The JCP take on this seems to be a blanket rule until clarification [on the 16-hour rule exemption] from DWP is received,” said Mr Ayton. “A 21-year-old learner who had seen our flier attempted to enrol on our programme but was told by JCP to not do that as her benefits would be in jeopardy.”

Two further JCPs have confirmed that they were following similar ‘ignore traineeships’ guidance.

The email saying not to promote the programme went on to say DWP had raised the JSA issue with the Treasury and was hopeful it would be resolved “quickly”.

It added: “In the interim the advice to advisers and providers is to ensure that any 18 or 19-year-old’s benefit entitlement is checked with their local JCP office prior to starting a traineeship.”

Since the traineeship programme, aimed at 16 to 24-year-olds, was introduced in September, it has suffered with lower than expected uptake and this latest development will do nothing to ease concerns.
A DWP spokesperson said traineeships were “an important part of the government’s long-term plan to create a stronger, more secure economy”.

He added: “Traineeships have the flexibility for providers to design them so jobseekers can participate without it affecting their benefits.”

He said where traineeships offered more than 16 hours a week “it is appropriate that Jobcentre Plus advisers make claimants aware of this and for the provider to consider reviewing the design of the programme.”

However, last month, Andrea Webb, director of traineeship provider Profile Development and Training, told FE Week that designing traineeships around the 16-hour rule was “limiting” and prevented them offering “a meaningful experience”.

Meanwhile, the Association for Employment and Learning Providers (ALEP) had, according to director of employment and skills Paul Warner, “a very productive meeting” met with DWP officials.

He added: “The signs are hopeful that the proposed change with regards to the 16-hour rule as applied to the study element of traineeships will take place shortly.”

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Editorial 

Keep the flagship afloat

Traineeships should have no enemies and yet there’s been much talk that they’re simply not taking off.

To what extent this has been the case we can’t say as traineeship data did not feature in the most recent statistical first release, despite promises it would be.

Regardless, it’s been clear for some time that the problem has been benefits.

The programme is simply not attractive to learners who stand to lose their Job Seekers Allowance (JSA) — to take part in a scheme that more often than has no immediate financial benefit.

This has been brought home by the email to Job Centre Plus advisers, who are told to steer teenagers clear of traineeships while the wait for the promised JSA exemption for traineeships goes on.

Why isn’t Nick Clegg stepping in and banging heads together? Isn’t the DPM supposed to be sorting out youth unemployment schemes? We know that every day a young person is out of work the harder it will be for them to secure a job.

The FE sector is willing and able to make a success of traineeships, but unnecessary barriers outside of their control put the whole scheme at risk.

Removing these barriers is perhaps the only way to ensure it really is a flagship policy, as opposed to a sinking one.

Chris Henwood, editor (chris.henwood@feweek.co.uk)

The managing director of a London-based independent learning provider has defended his firm after details of an alleged subcontractor payment dispute emerged.

James Clements Smith, of Prevista Ltd, a lead provider allocated £3.8m by the Skills Funding Agency (SFA) this academic year, confirmed there was an issue, but claimed to have paid all subcontractors “in line with conditions”.

It comes after several of its subcontractors wrote to other companies with a warning about alleged payment problems, and the SFA confirmed it had received “correspondence” about the issue.
But Mr Clements Smith told FE Week: “The company has paid all sub contractors and partners in line with negotiated and agreed service level agreements [SLAs], in line with funder requirements and in line with our audit practices. All legitimate outcome payments have been passed to our supply chain.

“I understand there is a letter circulating from a group of suppliers. All of whom have under-delivered to beneficiaries and on their SLA agreements with Prevista by some considerable margin.

“The dispute, if there is one, is with these suppliers who are all subject to audit and compliance issues related to their delivery across government funded programmes.

“Audit and compliance is underway across all of our funded programmes and as part of our annual audit cycle. Any dispute which may arise will be subject to legal proceedings.

“Prevista has a strong balance sheet, has been in the market for close to 20 years, has a strong cash balance and has firm contract value for the foreseeable future across a range of funding streams.”

Nine providers held SFA contracts, totalling £1.87m, through Prevista at the start of 2013/14, but other organisations outside the SFA’s remit also subcontract for the organisation.

Among Prevista’s current SFA subcontractors were Westminster Kingsway College and EXG Ltd.

The college has a £166,860 contract with the organisation, and confirmed an issue with payments had arisen, but would not go into detail.

A college spokesperson said: “We can confirm that the college has worked in partnership with Prevista and we are in discussions with them regarding some payments.”

And EXG Ltd, which had a £106,693 contract with Prevista at the beginning of the 2013/14 year, confirmed it ended its working relationship with the firm “earlier than planned”, but would not say why.

It comes after Prevista was rated as grade four, inadequate, in all areas following an Ofsted inspection last June.

The report said that the proportion of learners successfully achieving their qualifications was too low, and that planning and delivery of teaching, learning and assessment did not “provide an effective learning experience”.

The report added there was not enough focus on learners achieving functional skills qualifications, which was undermining success rates for apprentices.

But Mr Clements Smith insisted improvements were being made and claimed Ofsted had since revisited.

An SFA spokesperson said: “The chief executive of the SFA holds a contract with Prevista as the lead provider.
“It is not appropriate for us to get involved in any contractual disputes between a lead provider and subcontractors.
“We have received correspondence on this matter and have passed on the concerns raised to Prevista.”

The principal of a Yorkshire college said she had been “devastated” by the death of a three-year-old girl who got her neck caught in a rope at the college nursery in September 2012.

Unfortunately, it has taken the death of a three-year-old girl to expose the flaws in their health and safety practice…”

York College was found guilty of health and safety breaches over the death of Lydia Bishop, who became entangled while going down a slide on her first day at the nursery.

Alison Birkinshaw, York College principal, said: “This has been an extremely difficult period for all involved and we remain devastated by the awful events of September 17, 2012.

“We deeply regret what happened and can’t begin to imagine the pain experienced by Lydia’s family and everyone affected by this terrible tragedy. They remain constantly in our thoughts.”
A Leeds Crown Court jury heard Lydia lay unnoticed for 20 minutes before any attempt to revive her.

They heard safety measures to stop children using ropes alone or going unsupervised to a slide had not been enforced.

It emerged that the rope that had been left tied to the slide against health and safety policy.

The college was found guilty of failing to ensure the safety of babies, toddlers and pre-school children at its nursery between August 1 and September 18, 2012.

“The governing body and all at York College fully respect the legal judgements made in this case and remain committed to learning from this tragedy,” said Dr Birkinshaw.

“The college took the decision to close the nursery immediately after the tragedy, and it will not reopen.”

Nursery worker Sophee Redhead, aged 25, from York, was cleared of the charges against her at the end of the three-week trial. She had been accused of manslaughter by gross negligence and faced an alternative charge of failing to ensure Lydia’s health and safety.

Detective Chief Inspector Nigel Costello, of North Yorkshire Police, said: “This was an extremely tragic case for all concerned, not least for Lydia’s family who have been left devastated by the loss of their daughter.

“It is only right that a full investigation into her death was conducted to provide her family with some answers and to establish if there was a criminal case to answer.

“Unfortunately, it has taken the death of a three-year-old girl to expose the flaws in their health and safety practices and I hope this case serves as a warning to other organisations that it isn’t enough to just have a procedure written down.”

Judge Mr Justice Coulson said the college would be sentenced on Friday, February 14.

European funding for tackling youth unemployment could have been better spent at local level, a Department for Work and Pensions (DWP) official has admitted.

The head of the DWP European Social Fund (ESF) Division, Angus Gray, told a House of Lords inquiry into youth unemployment that too much of the fund had been spent centrally.

He pledged to ensure more control over the money was handed over the bodies such as Local Enterprise Partnerships (Leps).

Mr Gray was appearing alongside Skills Minister Matthew Hancock and DWP Employment Minister Esther McVey as part of the inquiry by the Lords EU Sub-committee on the internal market, infrastructure and employment, led by Baroness O’Cathain.

Sub-committee member Baroness Valentine said: “We have received evidence from some witnesses that the use of EU funds in England is too centrally-directed and delivered and that this inhibits the development of effective local responses.

“While Leps should have a greater role in determining priorities for the next programming period, we have not been persuaded that the government’s plans give sufficient powers to actors at the local level, particularly when it comes to delivery rather than planning.”

Mr Gray said: “I think what I’d say is those criticisms are absolutely valid of the way we have run the programme to date.

“I always point out that all provision is local, individuals are being helped in a city, or in a town, in a place and they are being helped to connect to the local labour market, but nonetheless it is true that the approach I and my predecessors have been managing over the last seven years has been more national than local.

“But we are changing that for the next programme, and I am testing the faith of people out there in whether they think I am making the change I am saying we are making.”

Mr Hancock also re-assured the committee, adding: “The ESF money has now been devolved to LEPs. Maybe we can use that to demonstrate the strength of our intentions in this area.

“It is true that in many cases funding is demand-driven, i.e. when you get an apprenticeship, that triggers the government funding, rather than giving money to an intermediary to then spend in a particular area. In that sense, it is devolved right to the ground to the employer or to the individual who is doing the training.”

The ESF supports Skills Funding Agency projects worth £874m and other schemes run by the DWP and National Offender Management Service totalling £354.6m.

It also gives an allocation of funding to regions — ranging from £2.8m (Gibraltar) to £403m (London).

The ESF spending across the European Union (EU) amounts to around 10 per cent (£62.4bn) of the EU’s total budget The aim of ESF spending is to support the creation of more and better jobs in the EU.

The boss of A4e has spoken of his disappointment at four former employers after they admitted ripping off taxpayers while employed by the welfare-to-work provider.

Ex-A4e recruiters Julie Grimes, Aditi Singh, Bindiya Dholiwar and Dean Lloyd, pleaded guilty to more than 30 charges of forgery and fraud when they appeared  at Reading Crown Court (pictured) on Monday, February 3.

I am deeply disappointed that a small number of people who formerly worked for A4e…”

The case followed a police investigation into financial rewards claimed for helping the unemployed into work through the European Social Fund (ESF) ‘Aspire to Inspire’ Lone Parent mentoring programme, which ended in July 2011.

It is alleged that they forged documentation to support fraudulent claims for rewards for work with learners who had not found work or did not exist over a period of four years until February last year.

Grimes, 51, of Staines, admitted nine charges of forgery and Lloyd, 37, of Milton Keynes, admitted 13 offences of forgery.

Dholiwar, 27, of Slough, admitted seven counts of forgery while Singh, 30, of Slough, admitted two counts of forgery and one of fraud. No date was set for set for sentencing.

Andrew Dutton, A4e chief executive, said: “I am deeply disappointed that a small number of people who formerly worked for A4e on the Aspire to Inspire contract in the Thames Valley up to 2011 clearly let down the people they were supposed to help, and in turn the taxpayer, Department for Work and Pensions (DWP) and A4e.

“A4e co-operated fully with the police enquiry, after our own internal investigation first brought these incidents to light.
“Since these events took place, we have augmented our controls and processes to seek to ensure that nothing like this could ever happen again.

“This includes implementing all of the recommendations for improvement made to us by White & Case LLP following their independent review of our core processes.

“Furthermore, rigorous audits undertaken by the DWP and the Skills Funding Agency have concluded that there is no evidence of fraud on any of the contracts that we currently hold with them.

“A4e has, of course, committed to paying back in full the total value of unsubstantiated claims that were made to the Department for Work and Pensions as a result of the activities of these former employees.

“I would also like to say thank you to our 3,000 loyal, hard-working and principled staff who each day deliver public services to the highest standards that help to improve the lives of thousands of the most vulnerable in our society.

“I am intensely proud of what they do and deeply sorry that the allegations have for so long cast a shadow over their good work.”
The trial of eight other ex-A4e defendants, who pleaded not guilty to all charges at Reading Crown Court, including conspiracy to cheat, is expected to start on October 6.

A further defendant, Nikki Foster, aged 30, of Reading, recruiter, was not at court on Monday. She is due to appear
on Tuesday, February 11, over charges including fraud.
All defendants were unconditionally bailed.
[Proceeding]

Fears have been raised that a lengthy application process for FE loans could be putting people off starting courses.

worrying conversion rate”

David Hughes (pictured top), chief executive of the National Institute of Adult Continuing Education (Niace), claimed there was a “worrying conversion rate” between the number of students offered 24+ advanced learning loans and those who took up the offer and started courses.

He told FE Week this could have been caused by slow processing of loans — an issue the Student Loans Company (SLC) said had “improved”.

Mr Hughes pointed to government figures published last year that showed there had been 52,468 loan applications up to the end of October — of which 39,043 were ready for payment by that point.
But just 25,200 loans were taken out by the end of October, according to provisional figures from the latest Statistical First Release (SFR).

It indicated that only 65 per cent of potential learners offered loans had taken up the offer and started their courses by the end of October.

Mr Hughes said: “The longer loans take to be processed, the more likely people are to miss the start of their course or even change their mind over starting altogether.
“It is probably one of the reasons why there is a worrying conversion rate from those who have applied for loans and those taking up courses.”

Meanwhile, the most recent figures from the Department for Business, Innovation and Skills (BIS) (published last month) showed 57,181 loan applications had been lodged by the end of December — of which 20 per cent were not ready for payment.

A spokesperson for the SLC claimed its processing rate had improved since the end of December — with 77.5 per cent of 61,935 loan applications received by February 2 being processed.
She said: “These figures demonstrate that SLC continues to efficiently process applications for funding.

“If a customer has been asked to provide evidence to support their application they are advised to send in their evidence as soon as possible to allow us to complete their application and prevent any delays.”

Christine Doubleday (pictured centre), deputy executive director of the 157 Group, said: “The ongoing lag in the readiness of payments is clearly worrying.

“Concerns raised earlier in the year are not being rectified quickly enough.

“Behind the statistics lie significant numbers of people who are either unable to start their learning or trying to do so on very little money.”
Shadow Skills Minister Liam Byrne (pictured right) said: “It is vital that people who miss out the first time [on education] get a chance to gain skills and qualifications.

“But the government is letting these people down. Ministers must tell us why these loan applications are not being dealt with quickly enough.”

A spokesperson for BIS declined to comment.